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PR Newswire

Pune Witnessed Gross Absorption of 1.8 mn sq ft in Q3, More Than Double the Absorption in Q2 2018: Colliers International India

 (10:00 Hrs. IST) 

PUNE, India, November 19, 2018 /PRNewswire/ --

In Q3 2018, Pune recorded gross absorption of 1.8 million sq ft, more than double the absorption in Q2 2018, due to absorption of pre-committed space. Most of the absorption activity was concentrated in three micromarkets, Hinjewadi (39%), Hadapsar/Fursungi (17%) and Bavdhan(11%).

"Pune has been witnessing a strong demand from IT/ITeS sector, with the existing occupiers scaling up their operations and new occupier's establishing their presence. In addition, Pune continues to attract large co-working operators. In order to mitigate the current lower vacancy levels in Grade A projects, occupiers are inclining towards signing forward leasing contracts to reserve future supply. Rents for Grade A projects are expected to continue the current momentum," says Animesh Tripathi, Director, Office Services (Pune) at Colliers International India. 

For the second consecutive quarter, technology occupiers remained the major demand driver in Q3 2018, constituting 71% of the total leasing activity. Other sectors leasing space in Q3 included consulting, Banking and Financial Services Institutions (BFSI), flexible workspace operators and engineering & manufacturing companies. Occupiers continued to prefer taking space in Special Economic Zones (SEZs), as the quarter witnessed 69% leasing in IT-SEZ developments.

The steady absorption will continue and forecast about 14.0 million sq ft of cumulative gross absorption from Q4 2018 to 2021. Gross absorption so far in 2018 has already surpassed the last two years' average annual absorption.

In Q3 2018, Pune witnessed the infusion of around 1.0 million sq ft of new supply, almost half of the new supply registered in Q2 2018. Of this total, 44% is concentrated in Bavdhan, 23% in Kharadiand 13% in Senapati Bapat Road (Shivajinagar). The remaining 20% is spread across the micromarkets of Nagar Road, Banerand Hinjewadi.

About Colliers International Group Inc.  
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world's most respected institutional real estate investors.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.

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For further information, please contact:
Sukanya Dasgupta
General Manager
Marketing & Communications, Colliers International India
Phone: +91-9811867682/ +91-8826377335
Email: Sukanya.dasgupta@colliers.com